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Optimal production planning in a hybrid manufacturing and recovering system based on the internet of things with closed loop supply chains

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Abstract

During the last decades many companies have to retrieve and treat their end-of-use products when products leave their end users in order to contribute to environmental protection and avoid defiance of relevant legislations. The utilization of returned products in a proper way is the best choice to conform to the above requirement, and save the cost in the production and maintenance process as well. With the development of information technologies, especially the internet of things used in product life cycle data management, the product life cycle information can be tracked, detected, stored and used in the returned product process. In this paper, an integer linear programming model is presented based on the detail product information for the optimization of procurement, manufacturing, recovering and disposal decisions. The model considers three recovery options, several value levels of returns and the value deterioration during the processing time period in order to satisfy the products and components demand in the production planning. A numerical example and sensitivity analysis are used to illustrate the performance and applicability of the model.

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Acknowledgments

This work is supported by the National Natural Science Foundation of China (Nos. 71231004, 71521001, 71171071, and 71501058), and the Humanities and Social Sciences Foundation of the Chinese Ministry of Education (No. 15YJC630097). Panos M. Pardalos is partially supported by the project of “Distinguished International Professor by the Chinese Ministry of Education” (MS2014HFGY026).

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Authors and Affiliations

  1. Department of Information Management and Information Systems, School of Management, Hefei University of Technology, Hefei, China

    Chang Fang, Xinbao Liu, Jun Pei & Wenjuan Fan

  2. Department of Industrial and Systems Engineering, Center for Applied Optimization, University of Florida, Gainesville, FL, USA

    Chang Fang, Jun Pei & Panos M. Pardalos

  3. Key Laboratory of Process Optimization and Intelligent Decision-making of Ministry of Education, Hefei, China

    Chang Fang, Xinbao Liu, Jun Pei & Wenjuan Fan

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  1. Chang Fang
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  2. Xinbao Liu
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  3. Jun Pei
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  4. Wenjuan Fan
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  5. Panos M. Pardalos
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Correspondence to Chang Fang.

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Fang, C., Liu, X., Pei, J. et al. Optimal production planning in a hybrid manufacturing and recovering system based on the internet of things with closed loop supply chains. Oper Res Int J 16, 543–577 (2016). https://doi.org/10.1007/s12351-015-0213-x

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